The case study explores motivational problems at Health-Time, a small fitness club experiencing a decline in membership and high personnel costs. It identifies issues related to low employee motivation and under-reward inequity, suggesting solutions like bonuses and flexible work environments. Recommendations are provided for management to enhance staff performance and restore equity perceptions.

1. CASE STUDY
COLLEGE CODE – C06

2. HEALTH-TIME
• Small but popular fitness
club
• Location – Mid-Size
College Town
• Superior Instructors
•Superior Market
•Regional
Monopoly
•Reduction in
Membership
•Employees
Leaving
•Unused
Equipment
•Niche Market
•Market
Dominance
Strength Weakness
Opportunit
y
Threats

3. CASE OVERVIEW
• Slight decrease in membership
• Very high personnel costs
• Reduced motivation among employees

4. Describe the motivational problems of the staff
at health-time through any of the
motivational theory.
ERG THEORY
Growth
Relatedness
Existence

5. Discuss the staff’s outcome valences, effort-to-
performance (EP) and performance-to-output
(PO) expectancies.
• Effort  Performance | Very Low
• Performance  Outcome | Absent
• Valence | Absent

6. Discuss whether the staff is in a situation of
under reward inequity and over reward inequity
and how they are attempting to restore a feeling
or sense of equity.
UNDER REWARD INEQUITY
• Receptionists are paid Minimum Wages only
• X – Y Theory
• Matt – X Theory (Continuous Guidance)
• Employees – Y Theory (Flexibility)

7. Solution #1
Monthly Bonuses
Movie Tickets
Restaurant Coupons
‘Employee of the Month’
Fresh Juices Daily
Provision to exchange shifts
twice a week
Solution #2
Discounts on referrals
Health-Time Photo
Campaign
Solution #3
Employee Feedback on
Manager’s Performance
He should create a flexible
work environment
What strategies would you recommend to matt
to deal with the problem?
WORKABLE STRATEGIES